Donald Trump, Jr. has weighed in on student loan forgiveness — and here’s what he said.
Here’s what you need to know.
Trump sharply criticized President Joe Biden’s potential plan to cancel student loans for millions of Americans. “Biden essentially wants blue-collar workers like truck drivers — who didn’t have the luxury of going to college to get drunk for four years — to bail out a bunch of upper-middle-class kids who chose to spend tens of thousands of dollars that they didn’t have on worthless gender study degrees,” Trump told The Washington Post.
Trump is referring to one major criticism of wide-scale student loan cancellation. As many Republicans have argued, Americans who didn’t go to college or who couldn’t afford to go to college would pay student loan debt for the select few who could. According to the latest student loan debt statistics, approximately 80% of adult Americans don’t have student loans or didn’t go to college.
Student loan forgiveness: Republicans have called student loan relief a “terrible idea”
Whether it’s student loan cancellation or more student loan relief, Republicans have vehemently opposed Biden student loan forgiveness. Federal student loan borrowers haven’t been required to pay a single dollar of federal student loans since Biden became president. Congress passed bipartisan historic student loan relief in March 2020 in response to the Covid-19 pandemic as part of the $2 trillion Cares Act stimulus package. President Donald Trump extended this student loan relief twice, and Biden extended student loan relief, which includes the student loan payment pause, an additional four times through August 31, 2022.
Rep. Virginia Foxx (R-NC), the leading Republican on the House Committee on Education and Labor, has called wide-scale student loan cancellation a mistake. Sen. Tom Cotton (R-AR) has said extending student loans relief is a “terrible idea.” Other Republicans have said wide-scale student loan forgiveness represents classic wealth redistribution. Five Republican senators introduced legislation that would prevent Biden from canceling student loans. “As Americans continue to return to the workforce more than two years since the pandemic began, it is time for borrowers to resume repayment of student debt obligations,” Sen. John Thune (R-SD), who introduced the legislation, said. “…Any future suspension of federal student loan repayments should be left to Congress, not the Biden administration.”
Student loans: what happens next
Biden is considering wide-scale student loan forgiveness and could announce his decision within weeks. That said, there is no guarantee that Biden will cancel student loans or who will qualify for Biden student loan forgiveness. Progressive Democrats in Congress, who have been pressuring the president to cancel student loans, have championed wide-scale student loan relief. They argue student loan forgiveness will stimulate the economy, reduce disparities, and help borrowers get married, start a family, buy a home and save for retirement. That said, student loan forgiveness could mean end of student loan relief. If Biden cancels student loans, you should also expect limits on student loan forgiveness. For example, Biden could restrict student loan relief only to federal student loans, college student loans, or both. To qualify, student loan borrowers also could face a maximum income requirement, which could exclude millions of student loan borrowers.
With the end of temporary student loan relief approaching, make sure you have a clear strategy to pay off student loans. Start now so you understand all your options for student loan repayment. Here are some of the best ways to pay off student loans faster:
- Student loan refinancing (lower interest rate + lower payment)
- Income-driven repayment (lower payment)
- Student loan forgiveness (federal student loans)